According to an article in the Dallas Morning News, Nortel Networks Corp. announced that it is implementing an additional 3,200 job losses as it attempts to slash costs and emerge from bankruptcy profitable. The new job losses are in addition to 1,800 job losses it announced earlier this year. Nortel has been in bankruptcy since 2005 and many observers believe that the company should be forced to completely liquidate; which would cause over 25,000 job losses worldwide.
Nortel, which was once one of the brightest technology companies in the world, is just another symptom of the current state of affairs facing the economy. The job losses sustained by companies such as Nortel are often not curtailed even when a company files for bankruptcy in an effort to save the business. And with the current downturn, many companies currently in bankruptcy may not be able to restructure their finances because of lagging sales and may be forced to liquidate and send thousands to the unemployment line.